Buzzing Below Rs 1: This Penny Stock Marks NCD Allocation at Rs 121 Cr; What’s Fueling Rallies?

Standard Capital Markets Ltd (SCML), a registered Non-Banking Financial Company, has disclosed the allotment of 12,100 non-convertible debentures (NCDs) through private placement for which they raised Rs 121 crore. This information was made available in two filings to the stock exchanges on Monday, May 5, 2025.

In the filings, it is noted that the company issued 10,000 unsecured and unrated NCDs, out of which 10,000 were reserved for public and had a face value of Rs 1 lakh each, summing a total to Rs 100 crore. In another circulated decision, the Board of Directors allocated 2100 more secured, unlisted, unrated NCDs at Rs 1 lakh each, totalling an additional Rs 21 crore. These NCDs were allotted on a private placement basis.

The funds will also sustain some of the ongoing operational activities of the company while helping mark some new implementations. For the first time in a long while, this is a relevant trigger for the penny stock that currently has a market cap hovering close to Rs 70 crores. Even though SCML's share price is below Rs 1, the firm's stock has shown significant appreciation over the long haul. As of May 5, 2025, SCML traded at Rs 0.41 on the BSE with a 2.35% dip for the day. While the stock has suffered a decline of 58% till 2025 and has lost 78% on an annualized basis, it was able to realize multibagger returns of 925% over the past five years, which shows that the company has performed relatively well in the past, sustaining the interest of investors.

SCML recently declared that it will consider developmental prospects in international markets to align with its intentions of long-term growth. In a filing dated April 24, the firm disclosed that the expansion of its financial services will be done globally, but with certain regulatory approvals deemed necessary, including the Reserve Bank of India (RBI). Included within the scope of the expansion strategy, the firm will also consider acquiring overseas franchises and other potential collaborations in major financial cities across the globe.

Standard Capital is signified as Standard Capital Markets was founded in 1987, becoming a more diversified Non-Banking Finance Company that offers a variety of services, such as providing credit, investment advice, insurance brokerage, provides legal services like arbitration and legal aid alongside particular subsidiaries. Standard Capital Advisors Limited is a company that undertakes merchant banking services through its subsidiaries.

The firm's financial performance recently has not been particularly impressive. In the last quarter of the year 2024, which is the third quarter of the financial year 2025 (Q3FY25), SCML's net sales stood at Rs 20.28 crore, an increase of 106% from the previous quarter (Q2FY25) net sales of Rs 9.84 crore. However, the remaining net loss added for SCML in Q3FY25 was Rs 45.10 crore, which is a considerable increase in losses from the prior quarter (Q2FY25) loss of Rs 0.70 crore. For the nine months ending December 2024 (9MFY25), net sales were Rs 38.16 crore while total net losses stood at Rs 44.05 crore. The firm reported total net sales amounting to Rs 27.39 crore, alongside a net loss of Rs 10.71 crore throughout the fiscal year 2024 (FY24) earnings.

Currently, SCML has a heightened goal of augmenting its capabilities in the financial markets as well as services offered in India and other regions, post its business expansion ideas.